The Discount Rate That Makes the Net Present Value of Investment

question 158

Multiple Choice

The discount rate that makes the net present value of investment exactly equal to zero is the:

• A) Payback period.
• B) Internal rate of return.
• C) Average accounting return.
• D) Profitability index.
• E) Discounted payback period.

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Definitions:

Value

The importance, worth, or usefulness of something, often considered in terms of how much something is worth to someone.

Trade Dress

The visual appearance of a product or its packaging that signifies the source of the product to consumers, including features such as design, color, or shape.

Package Shape

The physical form or design of a product's packaging, which can influence consumer perception, shelf presence, and ultimately, purchase decisions.

Nonfunctional Elements

Aspects of a system or product that define its operational qualities such as performance, usability, reliability, rather than what it does.